Thursday, October 7, 2010
It's Simple to Balance The Budget Without Higher Taxes
Politicians and interest groups claim higher taxes are necessary because it would be impossible to cut spending by enough to get rid of red ink. This Center for Freedom and Prosperity video shows that these assertions are nonsense. The budget can be balanced very quickly by simply limiting the annual growth of federal spending.
The Grouch: Politicians don't cut spending simply because they don't want to. It is the major source of their power and influence, and how they reward supporters and constituents in their districts. Even the most ardent deficit hawk changes their tune once under the spell of the Washington establishment. The only realistic way to control spending in DC is to keep taxes low. There is a deficit threshold even the politicians won't exceed for fear of losing reelection. But that limit for the current and previous fiscal years ($1.4T or more) has been greater than I ever would have imagined.
Posted by The Grouch at 1:00 AM
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My summary "cutting spending would be the prudent thing to do, but no one wants to give up their power."ReplyDelete
This is the problem. This is why we need term limits and why we absolutely must have call for more fiscal restraint: if we don't stop, the debt just grows and grows without adequate concern over whether those dollars needed to be spent in the first place.
We are in such a mess that I don't even know what the right answer is anymore. I don't think higher taxes is the solution to all the country's ills, that is for sure. But, it is an easy solution in that the government doesn't have to take any action. It is like taking on a night job. Just take in more revenue by making constituents pay more taxes, what a deal! Then they can spend spend spend, and not modify anything they do.ReplyDelete
Whatever happens, I pray they don't screw things up so badly that people feel compelled to revolt. Maybe an improvement would be to peacefully devolve federal powers to the states, allowing more experimentation and more distinction of choice.ReplyDelete
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No doubt money is power. I don't know if term limits will put some discipline in politicians or not, but certainly voting the big spenders out regardless of party will help.
Until spending either shrinks or starts growing less than revenues we are in deep trouble.
Interesting you should bring up the topic of federal powers vs state powers. Many strict constructionists would argue the founders intended for the federal powers to be restricted to what the Constitution explicitly authorized, nothing more, nothing less, and the states would be free to pursue whatever programs they wanted to offer their citizens.
Personally I don't think higher taxes are an answer for all the problems. But if I am going to pay higher taxes, I would like some accountability for the money. Just like the rest of us who "have" to spend with a budget and only within that budget. Unless the spending is cut, I don't think higher taxing is going to help much.ReplyDelete